What are the different types of bidders in auctions?

What are the different types of bidders in auctions?

There are several types of bidders in auctions, including competitive bidders, casual bidders, and shill bidders. Competitive bidders are serious about winning and often bid aggressively. Casual bidders participate for fun or curiosity, while shill bidders are usually associated with sellers and bid to inflate prices.

Can you explain more about shill bidders?

Sure! Shill bidders are individuals or entities that place bids on an item with the intent to artificially raise the price. They often work for the seller or are in collusion with them, which is considered unethical and is illegal in many jurisdictions.

How do competitive bidders differ from casual bidders?

Competitive bidders are typically more strategic and focused on winning the auction, often researching items and setting maximum bid limits. Casual bidders, on the other hand, may not have a specific goal and might bid impulsively or just to see how the auction works.

What strategies do competitive bidders use?

Competitive bidders often use strategies like setting a budget, researching the item’s value, and timing their bids to avoid bidding wars. Some may also use proxy bidding to automate their bids up to a certain limit.